Chapter 228: The Comic Fan Clubhouse (Part 2)

This news naturally reached Xia Dahai's ears, making him feel upset for a while. Eventually, he decided to avoid the old home entirely, maintaining contact only with a few of the more straightforward relatives.

However, now that Xia Yu was ready to make concessions and help his uncle, there were other distant relatives on his mother's side. If they came seeking help, it would be difficult to refuse.

On his father's side, there were few relatives who were greedy or ungrateful. Most were honest and straightforward. If they came seeking help in the future, it would be hard to refuse, especially since a precedent had been set.

Having decided to arrange jobs for his cousin and uncle, Xia Yu began to consider how to proceed.

He did not want to place relatives in his core companies, as this could lead to many unnecessary problems and could foster corruption, impacting the company's management and development.

How many wealthy individuals from humble beginnings ended up with problems when they filled their companies with relatives and friends? Xia Yu had seen countless bloody incidents of power struggles, corruption, and internal conflict online.

Thus, he was determined not to make the mistake of placing relatives in his core company and letting them wield power.

Unless it was for companies that were not crucial and where problems would not significantly impact him, he was not inclined to mix family with core business operations.

Suddenly, Xia Yu remembered the toy factory his uncle mentioned and asked, "Uncle, what's the situation with that toy factory?"

Chen Liang was puzzled by Xia Yu's question but thought for a moment before replying, "The toy factory is called Minghong Toy Factory. It mainly produces plush toys and plastic toys, with 158 workers. It's located in the Kowloon Industrial Park. The factory was doing well until the old manager's son took over. He claimed to have received a large order from the U.S., so he took out loans to upgrade machinery and expand production. Unfortunately, the order fell through, and now the factory is shut down."

Xia Yu's interest was piqued. He thought of sending someone to investigate whether the toy factory was worth acquiring. If it was, he would consider buying it, as he needed a toy factory to produce comic-related merchandise.

Moreover, after acquiring it, he would definitely expand it and hire locally, which would be better than having relatives fish for a living.

Additionally, if his uncle and cousin continued working there, they wouldn't have to adjust to a new job.

This approach would also benefit Xia Yu, as it was just a toy factory, and being at the bottom of the industry chain, any issues arising from having too many relatives wouldn't have a significant impact on him.

With this in mind, acquiring a toy factory and arranging jobs for relatives while treating all relatives equally on both sides of the family seemed like a win-win situation, fulfilling both familial and business needs.

With a smile, Xia Yu looked at his uncle's family and nodded, saying, "Uncle, I'll definitely help with this. Just wait for my news. At most, within a week, both you and Cousin will have your jobs settled."

As soon as Xia Yu finished speaking, both his uncle's family and Xia Dahai and Chen Mei were all smiles.

"Ah Yu, there's no rush. Just arrange it as you see fit. You have important things to take care of. Don't worry about us."

Although Chen Liang was thrilled that Xia Yu agreed to help, he also understood Xia Yu's busy schedule and quickly assured him not to rush.

Since Xia Yu had promised, they were confident it would be handled and were not concerned whether it would be in a week or half a month.

Xia Yu smiled, deciding not to dwell on the matter further. Once he made up his mind, there was no need to discuss it in detail.

He then continued chatting with his uncle's family about other topics.

In the evening, his uncle's family stayed overnight at Xia Yu's home and left early the next morning.

Xia Yu also did not linger at home. He took a car to Jiuding Animation Co., Ltd.

The sales figures for the second issue of *Zhiyin Comic* had been released, and today was the first day of sales for the third issue of *Zhiyin Comic*.

...

"Teng Dong, have the sales statistics from last week come in yet?"

As soon as Xia Yu found Ma Tengdong, he went straight to the point.

"Boss, the statistics are in. The total sales of the second issue of *Zhiyin Comic* are 630,000 copies. Here's the detailed report."

Ma Tengdong handed Xia Yu a prepared report from the drawer, which Xia Yu took and examined.

Sales in Hong Kong and Macau totaled 160,000 copies, Taiwan 100,000 copies, and Southeast Asian countries combined 150,000 copies, making the total sales of the Chinese version 410,000 copies.

In Japan, the sales were 220,000 copies. Compared to the 400,000 copies when it was distributed for free, the reader retention rate was as high as 55%.

The retention rate in Hong Kong, Macau, and Taiwan was 39%.

The lowest was Southeast Asia, with a retention rate of only 20%!

Xia Yu realized this was due to market maturity. The Japanese market was well-established, and the economy was developed, so readers were more willing to buy comics.

The quality of *Zhiyin Comic* was high, making it worth the price!

Southeast Asia's lower retention rate was understandable given its less developed economy compared to Hong Kong, Macau, and Taiwan.

The economic level in Hong Kong, Macau, and Taiwan was decent. Particularly in Hong Kong, where the local comic industry was just beginning to clear up, Xia Yu was enjoying a monopoly, leading to high sales.

"Teng Dong, good job. Maintain this sales level and strive for even higher numbers!"

Xia Yu put down the report and looked at Ma Tengdong with appreciation.

630,000 copies was a very good start. Despite the overall retention rate being 34%, if we exclude those who bought the magazine just to get a free copy without reading it, the actual retention rate would be much higher.

"Boss, rest assured. I will continue to work hard!" Ma Tengdong replied with a broad smile.

"By the way, many businesses want to obtain licenses to produce merchandise. I haven't agreed to any yet."

Suddenly, Ma Tengdong remembered and said.

Xia Yu responded with a faint smile, "I was just about to discuss this with you."

Ma Tengdong looked up with anticipation, "Boss, please instruct."

"Merchandise is highly profitable, and licensing production is a standard business practice. However, our comics have only recently launched, and the market isn't established yet. It's not the right time for licensing. We need to set a standard first!"

Xia Yu said slowly, and Ma Tengdong nodded in agreement, as he had the same concerns and had not agreed to any licensing yet.

"When you were in Japan, you should have seen that both Shogakukan and Shueisha have their own flagship stores for merchandise. We need to have our own as well. We need to capture the majority of the profits from merchandise."

Xia Yu's eyes narrowed as he spoke with an undeniable tone.

Flagship stores for merchandise are like Apple's experience stores in later years, selling only company-related products. They help build customer loyalty and generate substantial profits.

Such flagship stores can also sell comic magazines and future single volumes, enriching the company's distribution channels. It allows Jiuding Animation Co., Ltd. to better grasp market trends and enhance its negotiating power with distributors.

When Jiuding Animation Co., Ltd. has its own retail stores, other distributors will be more inclined to cooperate.

Thus, establishing flagship stores for merchandise has numerous benefits.

Ma Tengdong nodded in agreement and asked, "Boss, what should we name our flagship store?"

Xia Yu thought for a moment and said, "Let's call it 'Comic Fan Clubhouse.' Our readers are our guests, and the flagship store is here to serve them. We must manage it well and strive to make 'Comic Fan Clubhouse' the second home for comic lovers."

Ma Tengdong's eyes lit up, and he applauded, "This name is great! 'Comic Fan Clubhouse'—the second home for comic enthusiasts. It's memorable and fitting, and will help build reader loyalty."

Although Ma Tengdong's praise seemed a bit flattering, Xia Yu appreciated it and couldn't help but smile.

"Teng Dong, make a detailed plan and establish the management department for the Comic Fan Clubhouse. My requirement is to open ten Comic Fan Clubhouse locations in the first phase: one in each of the three areas of Hong Kong, one in Macau, one in each of the north and south of Taiwan, three in Japan, and one in Singapore in Southeast Asia. You need to carefully select the locations. These flagship stores will also serve as models for future expansions. The in-store design must be top-notch."

"Got it!"

Ma Tengdong nodded seriously, taking note.

"Also, we lack a factory for producing merchandise. What's your plan?"

"We'll build our own factory!"

Xia Yu replied decisively. Having his own factory would mean more people working for him, increasing his influence and allowing better control of quality while earning more profits.

"That's also what I wanted to discuss. There's a toy factory in Kowloon Industrial Park called Minghong Toy Factory. Have someone investigate it. If it's suitable, see if we can acquire it."

"I'll allocate the funds for building the Comic Fan Clubhouse and for acquiring the toy factory. My only requirement is efficiency and quality. Do you understand?"

Xia Yu looked at Ma Tengdong with a serious expression.

"Understood!"

Ma Tengdong responded with great enthusiasm.

To

 be honest, Ma Tengdong envied the massive 36 million HKD acquisition by Jiuding Media. But he knew that was because Jiuding Media was well-established and could absorb the acquired company.

However, Jiuding Animation Co., Ltd. was still in its early stages, and it was impossible to acquire other companies for expansion.

He hadn't expected to receive such a significant task and funding so soon, which made him very happy.

Ma Tengdong resolved to do an excellent job, hoping to impress Xia Yu and possibly secure additional funds to accelerate the company's growth.